Many people wonder how long the bear market will last.
Here are two things you need to know.
Let's start with the most popular question.
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1/How often do bear markets occur?
A bear market is a natural part of the economic cycle, occurring on average, once every four to five years.
Bear markets tend to appear around an economic downturn — since 1950, nearly 70% have coincided with an economic recession.
This year, U.S. markets are likely looking toward the Federal Reserve’s aggressive tightening cycle as a potential driver of slower growth ahead.
2/ What happens after the bear market?
I'm sure you're wondering what happens after the bear market.
Now, while bear markets can spark volatility and investor anxiety, the good news is they tend to be followed by bull markets.
Since 1950, the average S&P 500 bear
market return has been -34%, but the average
the bull market return has been around 167% and has lasted around 15 months.*
Over time, innovation and economic productivity tend to lead earnings and markets higher.